SNC-Lavalin Subordinated Debt in 407 Fully Repaid
JUNE 13, 2000
MONTREAL, QUEBEC--SNC-Lavalin today announced that 407
International Inc., the company that owns Highway 407 in the
Greater Toronto area, has completed another major milestone in its
refinancing program with the full refinancing of the sponsors'
subordinated debt. SNC-Lavalin's original contribution to the 407
investment was composed of $175 million equity in common shares
and of a $175 million subordinated debt commitment, to be drawn
down for construction costs, debt servicing and working capital.
407 International last week refinanced completely both the drawn
and undrawn portions of the sponsors' subordinated debt through a
subordinated credit facility arranged through Bank of Montreal and
the issuance of $300 million of BBB subordinated bonds, at 9 per
cent interest, due August 15, 2007, to an underwriting group
consisting of BMO Nesbitt Burns Inc. and CIBC World Markets Inc.
The latest bond issue follows the completion last March of the
refinancing of a senior bridge loan of $2.3 billion related to the
Highway 407 acquisition. "With this issue, we are now ahead of
schedule in terms of refinancing activities related to this major
acquisition," noted Jacques Lamarre, President and Chief Executive
Officer, SNC-Lavalin. "This will allow us to further optimize the
use of capital, reduce interest costs and enhance the return on
our investment in Highway 407."
Through this refinancing transaction, SNC-Lavalin received full
repayment of its drawn subordinated debt, including interest and
fees for a total amount of $68.3 million. SNC-Lavalin also
obtained the release of $123.5 million of letters of credit which
were related to the committed undrawn subordinated debt. This
transaction provides SNC-Lavalin with additional available
resources to fund its future growth strategy.
407 International Inc. is the sole shareholder of 407 ETR
Concession Company Limited, the operator and manager of Highway
407, the world's first all-electronic open access toll highway
which currently spans 69 km east-west, north of Toronto. The
company is owned by a consortium comprised of Spanish company
Cintra Concesiones de Infraestructuras de Transporte, SNC-Lavalin
and Capital d'Amerique CDPQ, a subsidiary of the Caisse de depot
et placement du Quebec.
SNC-Lavalin Group is one of the leading engineering and
construction firms in the world and a key player in the ownership
and management of infrastructure. The group and its companies
have offices across Canada and in 30 other countries and are
currently working in some 100 countries. The company is listed on
the Toronto Stock Exchange (symbol: SNC).
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FOR FURTHER INFORMATION PLEASE CONTACT:
SNC-Lavalin Group Inc.
Donna Yoshimatsu
Vice-President, Investor Relations
(416) 255-4055
Email: investors@snc-lavalin.com
or
SNC-Lavalin Group Inc.
Suzanne Joly
Director, Communications
(514) 393-1000
Email: jolys@snc-lavalin.com
SNC-Lavalin press releases are available on its Web site at
www.snc-lavalin.com |
